This post:
What is the DTCC?
Answer
Based on the search results provided, the Depository Trust & Clearing Corporation (DTCC) is an American post-trade financial services company that provides clearing and settlement services for the financial markets. Here are the key points about the DTCC:
The DTCC was established in 1999 as a holding company that combined the functions of the Depository Trust Company (DTC) and the National Securities Clearing Corporation (NSCC) 13.
The DTCC is user-owned and directed, and it automates, centralizes, standardizes, and streamlines processes in the capital markets3.
Through its subsidiaries, the DTCC provides clearance, settlement, and information services for a wide range of securities products, including equities, corporate and municipal bonds, derivatives, mutual funds, and more12345.
The DTCC's subsidiary, the Depository Trust Company (DTC), was established in 1973 to reduce costs and provide clearing and settlement efficiencies by immobilizing securities and making "book-entry" changes to ownership34.
The DTCC settles the vast majority of securities transactions in the U.S., processing trillions of dollars of securities on a daily basis. Settlement is an important step that contributes to investor confidence and reduces market risk12345.
The DTCC is regulated by the Securities Exchange Commission (SEC) and is a member of the U.S. Federal Reserve System34.
In summary, the DTCC is a critical financial infrastructure company that provides essential clearing, settlement, and other services to support the smooth functioning of the U.S. securities markets. 12345
Origins and Founding
The Depository Trust Company (DTC) and the National Securities Clearing Corporation (NSCC) were both founded in the 1970s as a result of the market's inability to keep up with the large volumes of securities trades. 12
DTC was founded in 1973 to solve the "paperwork crisis" on Wall Street by providing a centralized depository for securities certificates. 2
NSCC was founded in 1976 to provide clearing and settlement services. 1
Consolidation into DTCC
In 1999, DTC and NSCC were consolidated into the Depository Trust & Clearing Corporation (DTCC), which became the parent company overseeing these subsidiaries. 45
The creation of DTCC helped automate, centralize, standardize, and streamline the financial markets by providing integrated clearing, settlement, and asset servicing.
